What happens to a stock price when a stock splits?

Question

for instance I bought into general mills a few weeks ago at 64.00 a share. it currently sells for 65.69 lets say they split 2:1 does that mean the price splits in half? If so do they split in order to make their stock price look more attractive?

Answer 1

More shares of the stocks become outstanding to the shareholders while keeping the market cap of the company the same.  The amount the stock price is reduced depends on the split ratio.  For example, in a 2 for 1 stock split, if there are 10 shares priced at 5 dollars each, after the split there will be 20 shares priced at 2.50 per share.  If you owned 1 share before the split, after you would own 2 but the value of the 2 shares would be the same as the value of the 1 share you owned before the split

Stock splits most often happen when there is a rapid ramp up of a stock price.  Basically the idea is to get more shares out there so there are more buyers and sellers making it more likely that the stock will continue to increase in value.

Answer 2

A $100 stock that splits is now 2 shares at $50 - and nothing more. Some get excited about a split during certain market periods, and jump in to buy pre, intra or post-split.  

Answer 3

A split means you get 2 shares instead of 1. The price would be cut in half. 1 $64 = now 2 $32. It is more attractive for purchase since more people can afford the company share. When some stocks shares are too high in price, it's out of reach for small investors who would buy other low-mid cap companies in the pricing instead. It increases the companies volume trading. Instead of the 1 $500 share holder, it can now be 7 $100 holders and the company gets $200 more investment.